2 Quotes by Adair Turner

If all markets could be made perfect, and all human beings made rational, then more financial contracts, more trading, more liquidity, and more price discovery would indeed bring us closer to an efficient competitive equilibrium in which all resources would be allocated as efficiently as possible. But in the real world of inherently imperfect markets, imperfect information, and of human beings part rational and part not, market completion and increased liquidity can have negative effects.

It is therefore possible, though by no means certain, that we face not merely a severe debt overhang problem produced by excessive credit growth but also an underlying structural deficiency of nominal demand. If.